Joint Venture OpportunityFive Rental Homes 4 SALE in Orillia North Ward
$549000.00
$549000.00 Beds:11
Baths:5
377-381 WEST ST Orillia
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Real Estate Updater
Lakeview Realty Real Estate Updater October 1 2011
Bank of Canada keeping interest rates on hold
The Bank of Canada kept its trend-setting Bank Rate at 1.25 per cent on September 7th, 2011. This marks the eighth consecutive policy decision in which interest rates have been held steady.
A number of downside risks to the Canadian economy identified by the Bank in July have since materialized, and headwinds to economic growth have intensified. The Bank ended its announcement by saying, “In saying, “In light of slowing global economic momentum and heightened financial uncertainty, the need to withdraw monetary policy stimulus has diminished.”
“Chances that interest rates are headed higher this year are just about nil,” said Gregory Klump, CREA Chief Economist. “The announcement gave important hints on how the Bank will revise its economic forecast in October. The bottom line is that interest rates are on hold until we see global economic growth prospects brighten, the earliest glimmer of which won’t be seen until late this year. Even then, doubts about the durability of a global economic recovery will persist until fiscal quagmires in the U.S. and Europe are resolved.”
As of September 7th, 2011, the advertised five-year lending rate stood at 5.39 per cent. This is down 0.15 percentage points from 5.54 per cent on July 19th, when the Bank made its previous policy interest rate announcement.
The Bank will make its next scheduled rate announcement on October 25th, 2011.
(CREA 09/07/2011)
http://www.wandtheworld.com/sizzle/?go=wandtheworldeuphoria.
Michael Preston, please send me questions or your comments mjpreston@lakeviewrealty.ca
Building a Future Retirement through Real Estate , advertisement by Lakeview Realty Broker of Record Michael J Preston
I am a most adamant believer in Real Estate investment as a long term investment for safe, near sure returns. ( barring an act of God ) What other investment is their that will let you retire possibly with millions of dollars and it DOES NOT MATTER WEATHER THE PRICE GOES UP OR DOWN. If your seriously considering investing in Real Estate for your retirement future please give me a call so I can show you my active step by step plan to accomplish this goal.
Is it time in your personal financial life to switch from Real Estate holdings to mortgages, please call today and discuss your options. The banks have built empires with mortgages you can have a share of this wonderful investment to.
Michael J Preston mjpreston@lakeviewrealty.ca phone 705 325-3600
INVESTORS by Michael Preston
When is a good time to buy multi-unit residential properties? Anytime the fundamentals are good. Several factors must be considered . A carefully completed due diligence check list is must before proceeding. Firstly, a growing city will be ideal for possible future capital gains and income growth potential. The city or town you choose to invest in should have overwhelming evidence of growth and overall low vacancy rates. ( See CMHC free rental survey reports online) In a perfect world you will discover the location before competition drives prices up. Secondly a structurally sound building in good repair will provide a dependable cash flow and a growing positive return. Thirdly your financing can make it all happen or not. Vendor take backs are not uncommon and can be a great way to make a purchase for those entering this investment arena Now manage diligently! If you would rather not manage your self , look for buildings 10 units and up and you will be able to afford to hire a professional management team.. What cities or towns may be worth a closer look? If you move early you can grow and prosper as the communities plans become a reality . You could be in place as prices begin to rapidly rise and the general investment public and investment clubs begins to react to the strong fundamentals and low prices compared to the cities already on the radar screen. What cites would you choose ? What about St John New Brunswick,( oil refinery, tidal power), Sudbury Ontario,(mining , huge reinvestment in the older mining properties and infrastructure) Hamilton Ontario ( dynamic city redefining it self with investment in the water front) Kitchener Waterloo (highly educated workforce) and questionably Windsor Ontario,( a city that is also seeing the importance of diversity and is working hard to invest in its future ,residential vacancy rates are low , many good properties to choose from at excellent prices, you can grow here, location location especially important with this riskier city) Lastly you may find the best properties possibly diamonds in the rough in your own neighbour hood town or city. In our area Orillia, Ontario has been chosen (by Real Estate Investment Network out of Calgary Alberta)along with Barrie is still on their pick for the top ten towns Best Places to invest for five years running for potential capital gains growth. So keep your eyes open and your house in order so your able to move on the deal when it presents it self , any town and city can have them especially during these more turbulent times. Updated Sept. 16/2010
Michael Preston, please send me questions or your comments mjpreston@lakeviewrealty.ca
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RBC survey finds home buying intentions hold steadyTORONTO, Oct. 29 /CNW/ - A new RBC study conducted during the marketturmoil in October finds overall intentions to purchase a home in the next twoyears remain steady at 22 per cent and have not changed since January 2008. Aswell, renovation intentions are slightly higher than last year - up fourpercentage points as 70 per cent of respondents are planning to renovate ormake home improvements in the next two years.
"Despite recent economic events, we've noted that Canadians still believe a home is a good investment and many are continuing with their home improvement plans," remarked Catherine Adams, RBC Royal Bank's vice-president,Interest Rates Contribute to Sustained Affordability
Scotiabank has estimated that consumers’ total debt service burden in Canada (as a percentage ofafter-tax income) has not worsened during the past decade, with the burden staying close to 8%. In the US, by contrast, the debt service burden is almost twice as high (about 14%) and the burden has increased significantly, from about 12% a decade ago.
Low Debt Service Ratios in Canada
Very Few Canadians are in Arrears
Some very interesting estimates from Scotiabank’s Economics Department (see Figure 2) show that Canadians have retained strong equity positions in their homes. Scotiabank estimates that in Canada, home equity is equal to almost 70% of the values of residential property – in other words, total mortgage debt is only about 30% of the total value of Canadian homes, and the equity position today (almost 70%) is stronger than it was a decade ago (about 66%). In the US, on the other hand, there has been sharp erosion of home equity, which began during 2001/02. By 2004 – well before the onset of the current US troubles - the equity position had already seriously eroded.
Global troubles bring some good news for Canada: low interest rates
The most recent data from the Canadian Bankers Association – which covers 7 major banks – shows that just 0.27% of residential mortgages were in arrears (three months or more, as of June 2008). This amounts to about 10,300 out of 3.85 million mortgages. This data from the Canadian Bankers Association covers about 85% of all residential mortgages in Canada - it is possible that there is a different rate of arrears in mortgages from other lenders. The Bank of Canada estimates that about 2% of sub-prime mortgages in Canada may be in arrears or foreclosure. In total, 20,000 to 25,000 Canadian home owners might be in arrears, a very small fraction of the 8.05 million home owners in Canada.
Interest Rates Contribute to Sustained Affordability
One of the major risks faced by mortgage borrowers – a factor that has clearly contributed to the US crisis - is that their monthly mortgage payment might increase when their mortgage comes up for renewal. Interest rates for 5-year fixed rate mortgages (after lender discounts) are currently 5.25% to 5.5%, almost identical to the average for the past five years (5.2%). For variable rate mortgages, typical discounted rates are now 4.25% to 4.5%, similar to the average of the past 5 years (4.3%). For most Canadian home owners, future renewals will not result in increased mortgage payments. What’s more, most Canadian households have experienced income growth since they took out their mortgages, with the consequence that over time their ability to cover their mortgage payments has improved. In many respects the Canadian and US housing markets have followed similar paths during the past decade – until late 2006 (see Figure 3). In both countries strong demand resulted in rapid growth in property values. In the US, however, a strong growth cycle turned into a bubble, and like all bubbles, it eventually burst.